May help ease Social Security burden.
Could the 'Galveston Plan' solve the nation's Social Security woes? Both Texas senators were in Houston Thursday to find out.
Senators John Cornyn and Ted Cruz met at Rice University with officials from Galveston, Brazoria and Matagorda counties to hear how they've opted out of Social Security and offer a privatized public employee pensions for the past 30 years.
Cruz says it gives workers a sense of ownership.
"And the power of personal ownership to enable people often who are making modest salaries, to accumulate very substantial assets," the state's junior senator told reporters afterward.
The senators say Washington has to keep its promise to current and soon-to-be retirees.
"Seniors who are approaching retirement are worried about whether they're going to be able to depend on Social Security," said Cornyn. "We can eliminate a lot of anxiety and insecurity."
But will it work in Washington? Galveston County Judge Mark Henry says everyone needs to be on board.
"You saw Democrats and Republicans represented here, we all agree this is a great program," Henry told KTRH News. "We're glad to be out of Social Security and in our own program."
"We pay 2% less into the overall pool of money that goes in," he says. "The real benefit is for the employee. Their fund is fully funded from the first paycheck they get from the county and until that time they choose to retire it continues to accrue, then it's 100% theirs."
No word yet when the senators will present their findings at the Capitol.
